Nigerian investor Michael J. Prest is challenging the Bank of Zambia over the liquidation of Investrust Bank Plc, a dispute that has raised broader questions about investor protection in Zambia’s financial system.
Prest’s firm, BONI Global, says it legally acquired a 24.8% stake in the listed lender on the Lusaka Securities Exchange in 2021 through a licensed broker, using the exchange’s settlement process. The investment, BONI says, was part of a wider strategy that included talks with development finance institutions and a proposed partnership with an Asian fintech firm.
However, Zambia’s central bank later declined to recognize BONI as a shareholder, citing approval requirements for bank ownership. BONI says it submitted the required documents but spent nearly three years without shareholder recognition or board representation.
In January 2024, the Bank of Zambia formally said it did not recognize BONI’s stake. Three months later, the regulator placed Investrust into liquidation, a move BONI says effectively wiped out its investment. The firm is now seeking the return of its capital and compensation estimated at about $40 million.
The case has drawn attention beyond Zambia, particularly in Nigeria’s investment circles, at a time when African governments are pushing for greater cross-border capital flows and stronger investor confidence.- Billionaires.Africa